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A CFO is trying to determine her firms capital structure. The firm has the following simplified balance sheet: Balance Sheet: Long-term debt: $5,571,186.00 Shareholder Equity:
A CFO is trying to determine her firms capital structure. The firm has the following simplified balance sheet:
| Balance Sheet: | |
|---|---|
| Long-term debt: | $5,571,186.00 |
| Shareholder Equity: | $5,309,566.00 |
An analyst has estimated that the debt trades at 96.00% of book value, while the market to book ratio for the common stock is 1.08. What is the weight in debt for the firm?
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Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))
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